Prepare journal entries for the above transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Title: Journal Entry Worksheet for Factory Overhead Costs**
**Overview:**
This educational module focuses on recording factory overhead costs in an accounting journal. The primary objective is to provide learners with a practical understanding of how to prepare journal entries for overhead costs that exclude indirect materials and indirect labor.
**Instructions:**
1. **Incurred other overhead costs** - Record a credit to Other Accounts.
2. **Applied overhead to work in process**.
Prepare journal entries for the above transactions for the month.
**Interactive Tools:**
- **View transaction list**: This button allows learners to access a detailed list of transactions for the month of May, aiding in accurately preparing journal entries.
**Journal Entry Worksheet:**
**Tabs:**
- **Tab A**:
- Instruction: Record other Factory overhead costs (excluding indirect materials and indirect labor). Record credit to Other Accounts.
- Note: Enter debits before credits.
**Table:**
| Transaction | General Journal | Debit | Credit |
|-------------|-----------------|-------|--------|
| 1 | | | |
| | | | |
| | | | |
| | | | |
**Action Buttons:**
- **Record entry**: This button allows learners to finalize and record the entry into the journal.
- **Clear entry**: Clears the current entry form for re-entry.
- **View general journal**: Provides a comprehensive view of all recorded journal entries.
**Navigation:**
- **Prev**: Navigate to the previous page (Page 4 of 7).
- **Next**: Navigate to the next page.
This worksheet is an effective hands-on tool for learning how to handle factory overhead costs in accounting, ensuring a clear and practical understanding of the journal entry process.
![### Required Information
#### [The following information applies to the questions displayed below.]
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
| Inventories | | April 30 | May 31 |
|----------------------------|----------|----------|-----------|
| Raw materials | | $29,000 | $38,000 |
| Work in process | | $9,600 | $20,700 |
| Finished goods | | $51,000 | $35,000 |
**Activities and Information for May:**
- Raw materials purchases (paid with cash): $180,000
- Factory payroll (paid with cash): $150,000
**Factory overhead:**
- Indirect materials: $15,000
- Indirect labor: $34,500
- Other overhead costs: $109,000
**Sales (received in cash): $1,600,000**
**Predetermined overhead rate based on direct labor cost:** 55%
### Instructions
1. Incurred other overhead costs (record credit to Other Accounts).
2. Applied overhead to work in process.
**Prepare journal entries for the above transactions for the month of May.**
*Button: View transaction list*
**Journal entry worksheet**
*Navigation buttons: Previous (A), Next (B)*
Explanation of any graphs or diagrams:
In this case, there are no graphs or diagrams to explain. The information provided is in the form of a table that lists inventory amounts for the months of April and May, as well as activities such as raw material purchases, factory payroll, and factory overhead costs. These details are required to prepare journal entries for the transactions in May.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83bc59e4-03e4-4097-9e9b-ce7af64e5b99%2Fb44b239b-7b28-48c0-af4b-1348d2580acf%2Fmasa3yo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Required Information
#### [The following information applies to the questions displayed below.]
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
| Inventories | | April 30 | May 31 |
|----------------------------|----------|----------|-----------|
| Raw materials | | $29,000 | $38,000 |
| Work in process | | $9,600 | $20,700 |
| Finished goods | | $51,000 | $35,000 |
**Activities and Information for May:**
- Raw materials purchases (paid with cash): $180,000
- Factory payroll (paid with cash): $150,000
**Factory overhead:**
- Indirect materials: $15,000
- Indirect labor: $34,500
- Other overhead costs: $109,000
**Sales (received in cash): $1,600,000**
**Predetermined overhead rate based on direct labor cost:** 55%
### Instructions
1. Incurred other overhead costs (record credit to Other Accounts).
2. Applied overhead to work in process.
**Prepare journal entries for the above transactions for the month of May.**
*Button: View transaction list*
**Journal entry worksheet**
*Navigation buttons: Previous (A), Next (B)*
Explanation of any graphs or diagrams:
In this case, there are no graphs or diagrams to explain. The information provided is in the form of a table that lists inventory amounts for the months of April and May, as well as activities such as raw material purchases, factory payroll, and factory overhead costs. These details are required to prepare journal entries for the transactions in May.
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